- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
July 23, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement amounting up to USD5 million (JBIC portion) with HAL Vietnam Company Limited. (HALV), a subsidiary of HIROSHIMA ALUMINUM INDUSTRY CO., LTD. (Hiroshima Aluminum; Headquarters: Hiroshima Prefecture; President: Fumiharu Tashima) in Vietnam. The loan is cofinanced with Sumitomo Mitsui Banking Corporation.
The loan, as with loan to HALV in last October*1, is intended to finance the construction of a new manufacturing facility and the expansion of existing facilities of HALV, for manufacturing aluminum die-casting automobile parts used in engines and transmissions.
Hiroshima Aluminum is a mid-tier enterprise manufacturing and selling automobile parts and has supplied the parts to major automobile manufacturers in Vietnam, including local subsidiaries of Japanese auto manufactures, since the establishment of HALV in 2002. Amid the expected growth of demand for automobile parts centering in Asia, Hiroshima Aluminum plans to expand its production capacity in response to the demands of major customers. Thus, this loan contributes to maintaining and strengthening the international competitiveness of Japanese industries, through supporting of the overseas business deployment of Hiroshima Aluminum.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises and small and medium-sized enterprises (SMEs), in growing markets such as Vietnam, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.